Correlation Between Flutter Entertainment and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Apollo Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Flutter Entertainment and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flutter Entertainment PLC and Apollo Investment Corp, you can compare the effects of market volatilities on Flutter Entertainment and Apollo Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Flutter Entertainment with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Apollo Investment.
Diversification Opportunities for Flutter Entertainment and Apollo Investment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Flutter and Apollo is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and Flutter Entertainment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Flutter Entertainment PLC are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Apollo Investment go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Apollo Investment
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 2.29 times more return on investment than Apollo Investment. However, Flutter Entertainment is 2.29 times more volatile than Apollo Investment Corp. It trades about 0.16 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.25 per unit of risk. If you would invest 24,660 in Flutter Entertainment PLC on September 14, 2024 and sell it today you would earn a total of 1,620 from holding Flutter Entertainment PLC or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Apollo Investment Corp
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Apollo Investment Corp |
Flutter Entertainment and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Apollo Investment
The main advantage of trading using opposite Flutter Entertainment and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Apollo Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| Apollo Investment vs. Superior Plus Corp | Apollo Investment vs. SIVERS SEMICONDUCTORS AB | Apollo Investment vs. CHINA HUARONG ENERHD 50 | Apollo Investment vs. NORDIC HALIBUT AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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